Air Methods Corp (NASDAQ: AIRM) and The Providence Service Corporation (NASDAQ:PRSC) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Air Methods Corp and The Providence Service Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Methods Corp 6.67% 14.18% 4.43%
The Providence Service Corporation 4.11% 6.94% 2.46%

Institutional and Insider Ownership

93.4% of The Providence Service Corporation shares are held by institutional investors. 9.0% of Air Methods Corp shares are held by insiders. Comparatively, 18.9% of The Providence Service Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Air Methods Corp and The Providence Service Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Air Methods Corp N/A N/A N/A $2.59 16.58
The Providence Service Corporation $1.61 billion 0.47 $68.15 million $4.65 11.93

The Providence Service Corporation has higher revenue and earnings than Air Methods Corp. The Providence Service Corporation is trading at a lower price-to-earnings ratio than Air Methods Corp, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Air Methods Corp has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, The Providence Service Corporation has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Air Methods Corp and The Providence Service Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Methods Corp 0 3 1 0 2.25
The Providence Service Corporation 0 1 1 0 2.50

Air Methods Corp presently has a consensus target price of $42.50, suggesting a potential downside of 1.05%. The Providence Service Corporation has a consensus target price of $60.00, suggesting a potential upside of 8.11%. Given The Providence Service Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe The Providence Service Corporation is more favorable than Air Methods Corp.

Summary

The Providence Service Corporation beats Air Methods Corp on 6 of the 10 factors compared between the two stocks.

Air Methods Corp Company Profile

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

The Providence Service Corporation Company Profile

The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.

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